According to the Oil and Gas Journal, Syria's proven natural gas reserves are estimated to be 8.5 trillion cubic feet (Tcf). An estimated three quarters of these reserves are owned by the Syrian Gas Company (SGC), including about 3.6 Tcf in several fields in the Palmyra area (including Arak, Ha’il, Dubayat, Nakib and Sokhne), 1.2 Tcf at Suweidiya, 0.8 Tcf at Jbessa (including al –Hol, Ghona and Marqada), and 0.7 Tcf near Deir ez-Zour. Another 1.6 Tcf is found at the oil fields operated by the Al-Furat and Deir ez-Zoar companies, including Omar. All of these fields are currently producing, but are in decline. The remaining reserves are found at undeveloped fields including Al-Sharifa, Al-Sha’er, and Hayan. About half of Syria's natural gas is non-associated, and the rest is associated with major oil deposits.

In 2006, Syria produced and consumed (net) an estimated 223 billion cubic feet (Bcf) of natural gas, down from peak production of 251 Bcf in 2004. Another estimated 25 percent of gross domestic production is used for re-injection in oil production, vented or flared. Production comes mainly from SPC and Al-Furat operated fields around Palmyra, Dier ez-Zour and al-Hasakan in the northeast. Syria has stated plans to increase domestic production to around 350 Bcf by 2010, by bringing several new fields online with the help of foreign partners, as part of a strategy to substitute natural gas for oil in power generation and industrial use while freeing up as much oil as possible for export. As with oil exploration, Syria has been working to adopt more investor–friendly policies to attract needed investment for gas development. Developing the Syrian gas sector is the providence of the Syrian Gas Company (SCG), established in 2003, which manages exploration, production sharing agreements, downstream processing and sector developments.

Syria’s upstream exploration and development of natural gas reserves is active, although there have been few significant finds in the last decade. By 2010, Syria expects to bring and additional 194 Bcf of gas online through several projects, listed below. New gas additions are expected to rise to over 200 Bcf by 2012.

In September 2007, SGC reported a gas find with probable reserves of at least 177 Bcf at Brig, north of Damascus. In 2006, a significant discovery at Al-Bureij, near Damascus, was reported. The field contains an estimated 1.8 Tcf in natural gas reserves. However, development plans have not yet been announced and reserves are not yet confirmed.

In May 2006, Syria and U.S.-based Marathon oil signed a $127-million gas and oil exploration agreement. Under the 25-year deal, Marathon Oil and its partners planned to develop Al-Sha’er and Al-Sharifa fields. In June 2006, Petro-Canada signed an agreement with Marathon for a 90 percent stake in the fields. Development of this region has been at the center of almost two decades of negotiation between Marathon and the government of Syria. PetroCanda originally divested Syrian holdings (including the Al-Furat Company) when it lost out the US$850-million Palmyra fields development contract in early 2005 to Russia’s Soyuzneftegaz.

Currently, Syria has no net imports or exports of natural gas. However, in addition to developing indigenous resources, Syria plans to supplement future domestic production with imports from Egypt, Iran, and possibly Iraq. An agreement was signed in January 2004 between Egypt, Jordan, Syria, and Lebanon for the construction of a 746-mile, 970-Mmcf/d capacity Arab Gas Pipeline (AGP) which will bring Egyptian gas into the signatory countries. In February 2008, the section of the pipeline running from Jordan to Tishreen and Deir Ali in Syria was reported completed. A longer continuation of this branch carries gas to a plant outside of Homs. A second stage, which will extend the AGP to Aleppo and into Turkey, is expected to be completed by mid to late-2008. Syria is expected to import 32 Bcf of gas from Egypt in the first year of operation. Imports are predicted to rise to 77 Bcf by 2012.

Syria has the infrastructure to export a small quantity of natural gas to Lebanon through the 53-Mmcf/d, 16-mile GASYLE-1 pipeline which runs from the port of Baniyas to the Dier al-Ammar/ Beddawi power plant in northern Lebanon. The pipeline, completed in 2005, was originally conceived as conduit for Syrian gas exports. However, political, technical and economic considerations in both countries have precluded exports to date. The pipeline is expected to be used to transport Egyptian gas starting in mid-2008, as part of the AGP network. In April 2006, Lebanon announced plans to construct a second pipeline from Syria to the Zahrani power station in the south of Lebanon, which would double the pipeline capacity. However, plans are on hold due to the conflict with Israel.

In January 2008, Iran and Syria finalized a 25-year, US$1-billion agreement for the latter to import 106 Mmcf/d (rising to 318 Mmcf/d) to commence in late-2009. The gas will be exported in the summer months, due to high demand in Iran in the cold-weather months. It will flow through the Iran (Tabriz)-Turkey (Erzurum) gas pipeline, which is expected to be linked to the Syrian portion of the AGP at Kilis, through a proposed 39-mile pipeline.

In January 2008, Iraqi press sources indicated that Syria (through the Euro-Arab Mashreq Gas Market Project (EAMGM)) and Iraq are in talks to promote the development of the 2.1-Tcf Akkas gas field in Iraq’s western province of Al-Anbar, in part for export to Syria. IOCs, including Shell Oil, are reportedly interested the Akkas development and may be involved in the project. The parties discussed Iraq supplying Syria with at least 50 Mmcf/d of natural through a 10-inch wide 68-mile long pipeline between the two countries, for which a tender has reportedly been issued for the Iraqi portion. Ultimately, total exports from the field could reach 500 Mmcf/d, to be transited through Syria and the AGP for European consumption (potentially linking to the proposed Nabucco pipeline). Imports could begin as early as 2009.

The Syrian Company for Oil Transport (SCOT) operates an estimated 1250 miles of domestic gas pipelines. These pipelines carry gas from many of the largest producing fields, such as Omar and Palmyra, to gas processing plants and power plants throughout Syria.

Syria has five gas processing plants, with a total capacity of approximately 1.1 Bcf/d. It has been reported that another three joint ventures with foreign firms which will increase downstream gas processing by an estimated 500 Mmcf/d, have been proposed or are underway.